CAT nets $24M royalty payments

UK biotechnology company, Cambridge Antibody Technology, says that it has received almost $24 million dollars in royalty arrears from Abbott Laboratories after a High Court judge last month ruled was entitled to a 5% royalty on sales generated by Abbott Laboratories’ sale of the rheumatoid arthritis offering, Humira (adalimumab). [[20/12/04c]].

CAT says it has received $23.7 million in royalties due under the original judgement, and that Abbott has agreed to pay an additional $1.3 million in interest and compensation for currency loss on this amount. In addition, Abbott’s request to appeal the judgement has been denied, although the firm can apply directly to the Court of Appeal directly for permission to appeal.

CAT first took Abbott to court back in October 2003 after the latter after receiving the minimum level of royalty payments for Humira [[15/10/03a]]. The two firms originally hooked up back in 1993, when CAT licensed its technology to Abbott, enabling the latter to develop, make and sell a genetically engineered human antibody to be used in the treatment of rheumatoid arthritis. And it has been a huge success, with the product’s fourth quarter sales surging some 79% ahead to $852million dollars [[19/01/05c]]. CAT argued that it should receive a full royalty of just over 5% of sales, but Abbott claimed that royalties could be shared with third parties, and paid its first royalty on the basis that only 2% of sales was due.